What is nearshoring and how does it impact Mexico?

What is nearshoring and how does it impact Mexico?


Mexico has well-established production and logistics chains with the United States, and it also shares time zones with its neighbor to the north, an advantage that companies and investors take into account when deciding where to locate their production centers.

Another of the advantages of relocation has to do with savings in transportation costs, a lower risk of interruption in the chain, as occurred in 2020 due to covid-19, and shorter merchandise and supplies transfer times, commented Juan Carlos. Ostolaza, general director of the Mexico Competitiveness Center (CCMX).

Mexico, Canada and China are the three main trading partners of the United States, according to information from the Bureau of Economic Analysis (BEA).

In recent years, Mexico has offered lower labor costs than China. In 2020, for example, the cost per hour in Mexico was $4.82 per hour, while in China they paid $6.5 per hour, according to data from the CCMX.

Among the sectors that can benefit from the relocation, considered Ostolaza, is the metal-mechanic, technological, electrical and electronic sectors.


Although investment and companies are coming to Mexico through nearshoring, the government still has to work to offer better conditions for companies and take full advantage of this trend.

Among the pending subjects is: granting certainty and certainty, particularly that the rules of the game are not going to change from one moment to the next.

It also has to offer better security, better logistics routes for the transfer of merchandise and capacity in ports and airports to handle it, customs capacity must also be improved to have competitive times.

Another of the challenges has to do with the educational part, since Mexico has to have an educational offer to continue having qualified labor that meets the needs of companies.

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Written by Editor TLN

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